BIL reports 2% reduction in year end net profit

Barita Investments Limited (BIL) for the year ended September 30, 2017 booked a 10% decline in interest income fell by 10% during the twelve-month period, amounting to $1.13 billion relative to $1.26 billion for the comparable period in 2016. Interest expense also declined during the year by 6% to close at $847.44 million compared to $898.37 million in 2016. As a result, net interest income declined by 22% to $286.87 million relative to $366.05 million in 2016. BIL has attributed the performance in the year to declining interest rates.

Dividend Income fell 19% to total $20.59 million compared to the $25.55 million earned in 2016. Gains on sale of investment grew by 45%, to $259.32 million (2016: $179.28 million). Income from Fees & Commissions rose by 38%, to close at $475.73 million (2016: $343.55 million) this increase was due to “an increase in funds under management.”

Foreign exchange trading and translation gains declined by 53% to a total of $45.48 million for the year, compared to $96.39 million recorded in the previous year. Other Income amounted to $22 million, up 233% from $6.61 million reported for the prior financial year.

Administrative Expenses for the period amounted to $337.50 million, increasing 4% from $324.28 million in 2016. Staff costs rose marginally to total $340.58 million (2016: $340.49 million).

Notably, BIL reported Impairment of available-for-sale investment of $100.16 million (2016: $4.69 million). Nil was recorded for Share of results of investment in associated company for 2017 compared to a loss of $6.92 million in 2016.

Profit before taxation for the year amounted to $331.74 million versus $341.08 million recorded in 2016.

Consequently, the company reported net profits of $203.02 million, a decline relative to the $207.22 million booked in 2016; this followed taxation of $128.72 million (2016: $133.86 million). Total Comprehensive Income for the year amounted to $330.69 billion compared to $690.69 billion in 2016.

Earnings per Share for the year ended September 30, 2017, totalled $0.46 relative to $0.47 in 2016.  The number of shares used in our calculations amounted to 445,001,824 units. The company closed the at $7.94 as at the end of trading on December 22, 2017.


Balance Sheet at a glance:

As at September 30, 2017, total assets amounted $15.85 billion (2016: $14.77 billion), a $1.08 billion improvement mainly due to a growth in ‘Pledged Assets’ which increased by 25% to a total of $8.03 billion (2016: $6.44 billion). ‘Securities Purchased Under Resale Agreements’ also contributed to the upward movement in the total asset base with a 26% or $702.07 million increase to close at $3.39 billion (2016: $2.69 billion). total assets growth was however tempered by a 36% decline in ‘Marketable Securities’ which closed the financial year at $2.53 billion relative to $3.94 billion a year earlier.

Shareholders’ Equity amounted to $2.78 billion relative to $2.49 billion in 2017 resulting in a book value per share of $6.23 relative to $5.59 in 2016.



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